Why All Local Gold Buyers Dont Pay The Highest Price

Its no secret that if you take you are looking to sell gold jewelry, you may get a different offer from every gold buyer you go to and you may be wondering why. To explain this answer, you must first know that gold is worth a certain amount at any given time of the day. This amount is usually measured in troy ounces and is determined by markets around the world. A common term you might hear is “spot price” of gold. This is currently $1,360 per troy ounce. So given that the spot price of gold is the same at a given time of the day no matter where you take your gold to sell, why would the offers be different at different places? The basic answer to this is that different gold buyers have different business models, different amounts of overhead, and different profit goals. Similar to a car dealership, a gold buyer can essentially offer what ever he or she wants for your scrap gold and jewelry. This is why it is often good practice to take your items to a few different places. At Valley Goldmine, we have very little overhead and buy a larger volume which allows us to pay a higher price for your gold than our competitors. Another common question that we hear is “why did my jewelry weigh an ounce on my scale at home and you're telling me it is less than an ounce?” This question could have two possible answers. First off, jewelry is very very rarely pure gold. In fact, most jewelry is 14 karat or just above 50% gold. Therefore, if your 14 karat jewelry weighs an ounce total, that means there is actually just above a half an ounce in gold content. The other answer to this is that an ounce on a home scale is an entirely different unit than a troy ounce, which is the standard unit for weighing gold and silver. If you were to break each down into grams, an ounce on a home scale is equal to 28 grams where as a troy ounce is equal to 31.1 grams. I hope this clears up some common questions about selling gold. The bottom line though is that no matter where you go you should feel comfortable and not pressured into anything. A reputable gold buying business will never pressure you and will explain why they arrived at the offer they did.

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This entry was created on 2014-03-18 and has been viewed 16712 times